DWP considering impact of direct payments

Speaking at the Chartered Institute of Housing’s south east conference yesterday, Cathy Payne said officials are aware the ‘financial position of social landlords could be under threat’ from plans to pay housing benefit to tenants rather than landlords.

The Welfare Reform Bill, which is currently going through parliament, contains provisions to allow the housing element of the new universal credit to be paid to landlords. However the DWP has said this will only be used in exceptional circumstances.

Lenders have warned that if the proportion of housing benefit that is paid to tenants increases this could make the social housing sector less attractive to financial backers, because its income would be less secure. Read More: